Lawsuit: Three Debt Collectors Tried to Collect Debt on Behalf of Dissolved Company

New to ClassAction.org? Read our Newswire Disclaimer

Daubert Law Firm, LLC, Palisades Acquisition XVI, LLC, and its parent company, Asta Funding, Inc., allegedly violated the Fair Debt Collection Practices Act and Wisconsin law by illegally attempting to collect a 15-year-old debt on behalf of a dissolved company.

The suit claims that the plaintiff was sued by Platinum Financial Services in 2002 over a debt he supposedly owed the company, but that the judgment levied against him was void due to insufficient service of process. The plaintiff says he was never served with notice of entry of the judgment because Platinum never filed it.

Nevertheless, about 15 years later, on April 21, 2017, the defendants allegedly mailed the plaintiff a letter attempting to collect the same debt on Platinum’s behalf. When the plaintiff inquired about the alleged debt, the case says the defendant sent him a “Notice of Assignment of Judgment,” including an affidavit dated April 25, 2017 that was signed by a supposed representative of Platinum that purported to assign the debt to Palisades Acquisition.

The lawsuit claims the documents sent to the plaintiff were false, noting that Platinum was dissolved more than seven years prior. It further argues that additional documents, sent to prove the defendants' ownership of the debt, omit “an entirely unexplained gap” of five years.

On top of that, the complaint mentions the defendants have recently been sued over the same allegations: “attempting to collect on judgments purportedly assigned from Platinum Financial Services to Palisades XVI, supported by false affidavits of alleged authorized representatives of Platinum Financial services signed long after the dissolution of the corporation.”